The Japanese yen rose in the Asian market on Monday at the start of the trading week against a basket of major and minor currencies, heading toward its first gain in the last three days against the US dollar, amid accelerating safe-haven buying of the currency—especially after Japan’s ruling coalition lost its majority in the House of Councillors.

Data released last week in Tokyo showed that inflationary pressures on monetary policymakers at the Bank of Japan had eased, reducing the likelihood of a rate hike in July.

The Price

• Yen exchange rate today: The dollar fell against the yen by 0.6% to (¥147.88), from Friday’s closing price of (¥148.80), after reaching a high today of (¥148.66).

• The yen had lost 0.15% against the dollar at Friday’s settlement, marking its second consecutive daily loss, after weaker-than-expected core inflation data from Japan.

• Last week, the yen declined by 0.95% against the dollar, posting a second straight weekly loss.

Japanese Elections

The Liberal Democratic Party, led by Prime Minister Shigeru Ishiba, won 47 seats—fewer than the 50 required to secure a majority in the 248-seat House of Councillors, in an election where half the seats were up for grabs.

While the election results do not directly determine whether Ishiba’s administration will fall, they further burden the embattled leader, who also lost control of the more powerful House of Representatives in October 2024.

Opinions and Analysis

• Carol Kong, a currency strategist at the Commonwealth Bank of Australia, said that markets had likely priced in a much worse outcome for the ruling coalition ahead of the election, and questioned the yen’s ability to sustain its strength.

• Kong added: “It’s still unclear whether Ishiba can actually remain as prime minister… and what that means for Japan’s trade negotiations with the United States. Prolonged political uncertainty would negatively impact Japanese assets, including the yen.”

Japanese Interest Rates

• Data released Friday showed that Japan’s core inflation in June slowed more than market expectations, reflecting reduced inflationary pressure on the Bank of Japan.

• Following the data, the pricing of the likelihood that the Bank of Japan will raise interest rates by a quarter percentage point in the July meeting fell from 45% to 35%.

• To reassess these expectations, investors are awaiting more data on inflation, unemployment, and wages in Japan.

Most cryptocurrencies rose during Friday’s trading before facing profit-taking that pushed the total crypto market capitalization above the $4 trillion mark for the first time in history, raising concerns about a potential bubble.

Bitcoin had reached record levels above $123,000 earlier in the week, but profit-taking at these historic highs—combined with uncertainty over the final stages of regulatory legislation—limited its gains.

Three Regulatory Bills for Digital Assets Pass the US House of Representatives

On Thursday, the US House of Representatives approved three landmark bills that form the foundation for a clear legal framework for digital assets.

The centerpiece of the package, the GENIUS Act, passed with a majority of 308 to 122 votes, after having been approved by the Senate in mid-June. It now awaits the signature of President Donald Trump to become law.

The GENIUS Act mandates that:

- Stablecoin issuers must hold reserves of high-quality assets equivalent in value to the US dollar.

- Issuers must undergo regular financial audits.

- Dual federal and state oversight will be imposed on issuers.

The House also passed two additional bills:

- CLARITY Act: Aims to determine whether digital tokens fall under the jurisdiction of the SEC or the CFTC.

- Anti-CBDC Surveillance State Act: Prohibits the Federal Reserve from issuing a central bank digital currency without explicit congressional approval.

These developments represent a unified effort—described by Republican lawmakers as “Crypto Week”—to reshape the regulatory landscape for digital assets in the United States. Officials and market participants welcomed these steps as a decisive move toward stable regulatory foundations.

Political Uncertainty and Democratic Criticism

However, the regulatory package still faces hurdles, as the two bills unrelated to stablecoins await Senate approval. Markets are closely watching for final passage before fully responding to the new regulatory environment.

Doubts continue to surround the crypto industry. The sector strongly supported President Trump and the Republican Party in last year’s elections, and critics say this political backing is now bearing fruit.

Some Democrats have also criticized crypto deals involving Trump and his family, reportedly generating them massive wealth—at least on paper. The Nation conducted an in-depth investigation into a mysterious investor in a Trump-linked cryptocurrency, raising questions about conflicts of interest and undue influence.

Democratic Representative Maxine Waters, the ranking member on the House Financial Services Committee, stated: “These laws make Congress complicit in the largest crypto fraud in Trump’s history.”

Bitcoin Outlook: Still on the Rise

After recently hitting a new record, the world’s most prominent cryptocurrency is expected to continue rising in value, potentially surpassing $160,000 in 2025.

Bitcoin (BTC) is forecast to peak at $162,353 this year (€139,148), before settling around $145,167 (€124,418), according to the latest survey by UK-based fintech firm Finder, which compiled price expectations from 24 crypto industry experts.

The projections varied widely. The most optimistic forecast saw Bitcoin reaching a peak of $250,000 this year, while the lowest estimate averaged $87,618, with some analysts expecting a drop to as low as $70,000.

Bitcoin recently jumped to $120,000, up from below $100,000 at the end of last year.

Przemysław Kral, CEO of crypto trading platform Zondacrypto, told Euronews: “Several factors are driving demand for Bitcoin, including clearer and more favorable regulations, increased real-world use cases like payments, and changes in economic conditions.”

He added that regulations such as the EU’s MiCA framework played a significant role in the recent rally. The Markets in Crypto-Assets (MiCA) regulation standardizes rules for digital assets across the EU. Along with growing institutional interest—especially through exchange-traded funds (ETFs)—this has made cryptocurrencies more accessible to a wider range of investors.

Crypto ETFs simplify exposure to these assets without requiring direct ownership. These funds have seen growing demand since Bitcoin ETFs began trading in US markets last year.

Is There a Bitcoin Bubble?

Although the integration of cryptocurrencies into the mainstream financial system has strengthened interest in Bitcoin, there remains a risk of a so-called “bubble”—where prices are inflated by investor enthusiasm without strong underlying fundamentals.

According to Ravi Sarathy, professor of international business and strategy and crypto expert at Northeastern University, large institutional investors—including MicroStrategy—have accumulated vast amounts of Bitcoin, possibly contributing to its price surge. MicroStrategy holds an estimated $65 billion in Bitcoin reserves.

Sarathy told Euronews Business: “After previous institutional hesitation, the new US rules allowing Bitcoin ETFs have made it easier and more convenient for both institutional and retail investors to allocate some resources to these high-risk/high-reward assets.”

Bitcoin is capped at a maximum supply of 21 million coins, driving demand amid limited supply. Sarathy noted: “This has also fueled the rise of ‘Digital Asset Treasuries’—institutional strategies that pool investor funds to invest in a range of digital assets including Bitcoin, which accelerates demand and price increases.”

He added that despite the short-term reaction to new US legislation, prices could continue to rise in the long run.

How Is Washington Fueling Bitcoin’s Rally?

Interest in Bitcoin has soared since President Donald Trump launched his campaign to make the United States “the global capital of digital currencies.” Support for crypto from the US government reached its peak this week, with the administration announcing “Digital Assets Week.” Lawmakers in the House are debating a series of bills that may define the industry’s regulatory framework.

John Hawkins, senior lecturer at the University of Canberra, said: “Bitcoin and cryptocurrencies in general are getting support from the Trump administration—which is ironic, given they were initially conceived as alternatives to government-backed currencies and favored by libertarians.”

Hawkins believes that: “Bitcoin lacks any intrinsic value. After 16 years, it still hasn’t fulfilled its core ambition of becoming a widely-used payment method. It remains a speculative bubble.”

Others, however, see Trump’s backing as a reason to buy.

Desmond Marshall, Managing Director of Rouge International and Rouge Ventures, said: “With Trump backing digital assets, his sons involved in massive crypto projects, and the strength of the US dollar, the US government has started accumulating large Bitcoin reserves. Many companies have supported this move with institutional crypto strategies.”

The most bullish analysts expect a major price rally, with forecasts of Bitcoin reaching $250,000 driven by institutional demand.

Martin Fröhler, CEO of the trading platform Morpher, said: “Institutional and corporate demand hasn’t slowed, while retail investors remain largely on the sidelines. Nation-state adoption is still in its early stages.”

Bitcoin has gained around 25% year-to-date despite ongoing trade tensions, conflict in the Middle East, and the absence of monetary easing from the Federal Reserve.

Is Now the Right Time to Buy Bitcoin?

About 61% of experts surveyed believe now is a good time to buy.

However, caution remains essential, according to Zondacrypto CEO Przemysław Kral.

He told Euronews: “With this massive momentum, restraint is key. No one can predict whether the price will rise or fall. We always recommend thorough research and a solid understanding of Bitcoin before investing.”

Kadan Stadelmann, CTO at Komodo, believes Bitcoin will continue to rise steadily over the next six months before entering a “bear market” (when selling outweighs buying).

Stadelmann said: “Given that Bitcoin has already reached $110,000, and with at least six months left in this upward cycle, I expect a peak in Q1 2026, followed by a bear market.”

When asked about ultra-long-term projections, Finder’s experts predicted Bitcoin could reach $458,647 by 2030 and surpass $1 million by 2035.

How Might Quantum Computing Affect Bitcoin’s Encryption Security?

A vast majority of experts surveyed (79%) believe quantum computing poses a threat to Bitcoin’s encryption security, as quantum computers could potentially break the cryptographic standards protecting cryptocurrencies.

A quarter of experts (25%) think quantum computers could crack Bitcoin within five years, while another 25% believe it may happen within five to ten years. The remaining 29% believe it would take more than ten years.

Only 8% believe quantum computing poses no threat at all, while just one-third of experts feel the Bitcoin community is at least somewhat prepared to face the challenge.

Most US stock indices leaned toward negative territory in Friday’s trading, though they remained near all-time highs as markets monitored corporate earnings results.

The earnings season for companies listed on Wall Street for the second quarter of 2025 has begun, starting with bank earnings, most of which have shown strong figures.

Global markets have been gripped by concerns this week amid uncertainty over the possibility that US President Donald Trump might dismiss Federal Reserve Chairman Jerome Powell from his position.

In terms of market performance, the Dow Jones Industrial Average fell by 0.4% (equivalent to 160 points) to 44,326 points as of 16:15 GMT. The broader S&P 500 Index declined by 0.1% (3 points) to 6,293 points, while the Nasdaq Composite dropped by 0.1% (10 points) to 20,874 points.

Copper prices rose during Friday’s trading amid a decline in the US dollar against most major currencies and ongoing concerns over the tariffs announced by US President Donald Trump on the industrial metal.

According to a note from ANZ Bank analysts reported by Reuters, they stated that Trump’s announcement of a 50% tariff on copper imports would push the US market to rely on domestic inventories in the short term, which would put pressure on copper prices on both the COMEX and London Metal Exchange.

Data released on Wednesday showed that copper inventories at the London Metal Exchange rose by 10,525 tons to 121,000 tons, as eight Hong Kong-based LME warehouses officially began operations this week.

Protesters in Peru—the world’s third-largest copper producer—ended a blockade of a major copper transport route that had lasted more than two weeks, according to one protest leader speaking to Reuters on Tuesday evening.

Meanwhile, Rio Tinto announced on Wednesday a 9% increase in its quarterly copper production and projected that its annual output would be at the upper end of its forecast range. Antofagasta also reported an 11% rise in its copper production during the first half of the year.

In another development, the pace of copper inflows into the United States from traders preparing for the tariffs has slowed, following the announcement of a 50% tariff set to take effect on August 1.

On the other hand, the US Dollar Index fell by 0.5% to 98.2 points as of 15:58 GMT, after recording a high of 98.5 and a low of 98.1.

In US trading, copper futures for September delivery rose by 1.2% to $5.57 per pound as of 15:56 GMT.